Tax Liability on the Purchase of a Ford, Model 1955 car

September 8, 1959 BIR RULING NO. 421-59 The Interiors Home Furnishers 607-609 Echague, Manila Gentlemen : Reference is made to your letter of the 7th instant, requesting information whether or not you are liable for any tax on the car (Ford, Model 1955, bearing Motor No. U5LG-16112) you are contemplating to buy from Miss Guadalupe Reyes. From the copy of the deed of sale submitted with your letter, we gather that said car was originally owned by F. B. Nicholson, a citizen of the United States on active duty with the U.S. Armed Forces stationed at the U.S. Naval Station, Sangley Point and that the same was purchased from him by Ricardo Diaz, a Filipino residing at 202 P. Esteban, Cavite City, on April 3, 1956 (or before the effectivity of Republic Act No. 1511 on June 16, 1956). Under the circumstances, no tax is due by reason of said sale, pursuant to the decision in the case of Collector of Internal Revenue et al. vs. Marcelino T. Viduya, G.R. No. L-10808, promulgated on February 28, 1958. Such being the case, and considering that the compensating or sales tax is due only on original importation and sale, the subsequent sales of the car in question to the different persons alluded to in your letter, including the contemplated sale to that company, are not subject to tax. This serves as authority for the Chief, Motor Vehicles Office, to effect registration of the car in the name of that company without requiring previous presentation of any evidence of tax payment. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue